Wal-Mart probe: ball now in RBI’s court

The investigation by Indian investigation by Indian authorities into whether Wal-Mart Stores Inc violated local investment rules in 2010 has been referred to the Reserve Bank of India, officials familiar with the matter told Reuters.

Last year, the RBI asked the Enforcement Directorate under the finance ministry to look into whether the world's largest retailer broke foreign exchange rules when it invested $100 million in the Bharti Group to run supermarkets.

Wal-Mart, which recently ended its joint venture with Bharti Enterprises saying it will independently own and operate its business in the country, has said it has complied with Indian regulations.

The investment was made before the government opened the supermarket sector to foreign companies.

Officials said the enforcement directorate has passed along its findings to the central bank.

"The ED has investigated the Wal-Mart case and has forwarded its report to the RBI for a decision by the RBI in the matter," said an enforcement directorate official who is not authorised to speak to the media and declined to be identified.

Another official said, "They have completed their investigation and sent the RBI papers, and now the RBI will do its own examination on whether Wal-Mart violated foreign exchange rules."

A  Wal-Mart spokeswoman said the enforcement directorate has not yet released its findings, and "so we have not seen the result of its review and cannot comment."

India allowed foreign companies to set up majority-owned supermarkets in the country in September 2012, but no company has so far applied to enter due to lack of clarity around the entry rules.